Tuesday, April 25, 2017

Start and stop swamp

We expect this, the economy has geared itself to a bankrupt, start and stop government in the swamp.

Economists can change the semantics all they want, but a paralyzed, debt ridden start and stop legislature is bankrupt. Goldman-Sachs is trying to get interest payments made, but the potential growth of the economy is about 1.75%, and the swamp typically pays the ten year rate. GS has to target a narrower window on the ten year, 2.0-2.4; all they have is 40 basis points now. Everything in the senate has to be carefully orchestrated, else they get a sudden jump in interest payment and small states lose their cookie.